Under the Virginia plan, to be called VirginiaSaves, employers that have 25 or more full-time employees—defined as working at least 30 hours a week—and that have been in business at least two years and don’t offer a retirement savings plan would be required to automatically enroll employees in an individual retirement account, or IRA, at a percentage of pay that has yet to be determined. Employees would be able to opt out or change their savings rate.Wall Street Journal April 8, 2021
We are rapidly approaching retirement plan overload. There are so many options for retirement saving many people are confused and facing analysis paralysis.
There is no reason for anyone desiring to set up a retirement plan with automatic contributions not to do so. Instead, thirteen states so far have set up more programs, more rules, more confusion, more responsibility for small business.
So, what is the problem? Is it the inability to save as politicians like to pronounce or is it lack of initiative, confusion and responsibility by the individual?